NeoPhotonics sets revenue record in first quarter 2013

Optical component and subsystem supplier NeoPhotonics Corp. (NYSE: NPTN) says that the $56.1 million it earned in its fiscal first quarter ended March 31 not only beat consensus of $52.8 million, but set a first quarter revenue record for the company, making the quarter the best first quarter in NeoPhotonics' history. Products for 40-Gbps and 100-Gbps applications accounted for 39% of that revenue, also a record.

While the $56.1 million represented a sequential decline of $6 million from the previous quarter, it surpassed the revenue levels of the same quarter last year by $1.8 million. However, GAAP gross margin of 20.9% shrank from both the 22.7% of the prior quarter and the 21.0% seen in the first quarter of 2012. Loss from continuing operations was $10.5 million, worse than the $3.0 million lost in the prior quarter, but better than the $11.8 million lost in the year-ago quarter.

“We are pleased with the success we are experiencing in our portfolio of 100G products for telecom and datacom applications, which grew approximately 41% quarter-on-quarter, and are poised for further growth as the 100G upgrade cycle continues,” said Tim Jenks, chairman, president, and CEO of NeoPhotonics. “Moreover, our recent acquisition of the optical components unit of LAPIS Semiconductor, now called NeoPhotonics Semiconductor, is expected to further strengthen our technology leadership and market opportunity in the 100G upgrade cycle as carriers seek to satisfy growing customer demand for high speed connectivity to drive mobile video and other bandwidth intensive enterprise applications.”

With the addition of NeoPhotonics Semiconductor, the company expects a spike in revenues in the current quarter. Management guided second quarter revenues to fall within the range of $70 million to $75 million. Non-GAAP gross margin will be within the range of 21% to 25% (it was 23.1% for the recently completed quarter), with GAAP diluted loss per share from continuing operations likely in the range of $0.16 to $0.27. Non-GAAP loss should fall between $0.08 and $0.18 per share, versus the $0.14 loss experienced during the first quarter.

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